MEXICO CITY, May 11, 2017 – PGIM Real Estate has completed a capital raise of MXP$4.4 billion (USD$235 million) for PruMex IV CKD, a closed-end real estate fund investing across various property sectors in Mexico. PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU).
The capital raise included investments from Mexican institutional investors, as well as a co-investment from PGIM. More than half of the capital was raised from existing PGIM Real Estate clients, with the remaining capital coming from new investors.
“The strong market fundamentals in Mexico, including a growing middle class, competitive labor costs and manufacturing, and favorable housing policies and regulatory changes, continue to be the key drivers for the development of industrial and residential assets in the country,” said Alfonso Munk, Americas Chief Investment Officer for PGIM Real Estate. “The strong participation of existing and new clients in PruMex IV is a testament to PGIM Real Estate’s on-the-ground expertise and footprint that positions us to capitalize on the long-term investment opportunities in Mexico.”
Expanding on the investment strategy of the prior PruMex fund series, which focused solely on industrial real estate, PruMex IV will also invest in residential-for- sale, multifamily and mixed-use properties to create a well-diversified portfolio across the spectrum of opportunities in Mexico. Target investment markets include the Bajio-Central and north border regions for industrial assets, and the Mexico City metropolitan area for residential-for-sale, multifamily and mixed-use assets.
PGIM Real Estate has been investing in Latin America since 2002, and today is one of the largest international real estate investment managers in the region, with approximately $3 billion in gross assets under management as of March 31, 2017. With a dedicated team of approximately 70 professionals based in Mexico City, PGIM Real Estate manages country-specific strategies investing in industrial, residential, retail and mixed-use properties on behalf of institutional investors. PGIM Real Estate has been a pioneer in the region, investing in Mexico’s emerging multifamily sector in 2009, and creating Terrafina, a publicly traded FIBRA, in 2013 by combining its industrial portfolio of funds. Terrafina has approximately $2 billion in gross assets under management as of May 1, 2017, and is externally managed by PGIM Real Estate.
About PGIM Real Estate
PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia-Pacific with deep local knowledge and expertise, and gross assets under management of $66.0 billion ($47.6 billion net) as of Dec. 31, 2016. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate investment vehicles that span the risk-return spectrum across core, core plus, value-add, debt, securities, and specialized investment strategies. For more information, visit www.pgimrealestate.com.
With 14 consecutive years of positive third-party institutional net flows, PGIM, the global asset management businesses of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world, according to Pensions & Investments’ May 2016 Money Manager Survey, with more than $1 trillion in assets under management as of March 31, 2017. PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents.
Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about PGIM, please visit http://www.pgim.com. For more information about Prudential, please visit news.prudential.com.
11 May 2017
PGIM Real Estate raises MXP$4.4 billion for Mexican private real estate fund
- PGIM Real Estate: Global Real Estate Trends for 2017
- PGIM Real Estate raises more than £1b for European private real estate debt fund
- PGIM Real Estate acquires 42-44 rue de Paradis office in Paris
- PGIM Real Estate completes the acquisition of T Tower in Seoul
- Prudential: Guaranteed lifetime income options in 401(k)s helps bring financial security closer to employees, helps reduce costs for employers
- Prudential: Student loan debt postpones dreams, threatens financial security, say young adults
- Josh Cohen will join PGIM as Head of Institutional Defined Contribution Practice
- Dianne Bogoian joins Prudential Annuities as head of Product
- Prudential Financial, Inc. to Hold 2017 New York Investor Day; Live Webcast Available